Case study capital cost estimation

CASE STUDY CAPITAL COST ESTIMATION FOR A 150,000,000 LB/YR POLYSTYRENE PLANT USING THE SUSPENSION PROCESS... 

Case Study Capital Cost Estimation Cost of Equipment... 

Case Study 1. Pump-and-Treat System with a Packed-Tower Air Stripper, McClellan Air Force Base Superfund Site, California, Operable Units B/C, 1987. The costs associated with pump-and-treat system used at the site were estimated in 1994. Costs were approximately 80 per pound of removed volatile organic compounds (VOCs) based on operating costs alone and approximately 150 per pound when capital costs were included (D141286, p. 135). It should be noted that the operation and maintenance costs for the an air stripper could not be separated from the total cost of the project. Capital cost and operating cost information for this project are summarized in Case Study 1. 

Based on data from a demonstration at the Savannah River site, the total cost for SPSH was estimated to be 86/yd. In contrast, the use of traditional SVE at the site would have cost an estimated 576/yd. Total capital cost for the Savannah River site demonstration was estimated to be 1,277,300. Total operation and maintenance cost was estimated to be 16,900 per month. Table 1 gives a cost comparison between SPSH and SVE (D105759, pp. 15,16 D222606, p. 232). Detailed breakouts of capital cost as well as operation and maintenance cost can be found in Case Study 2. 

The vendor supplied an unspecified case study that compared the costs of an existing pump-and-treat system with a pump-and-treat system that had been retrofitted to accommodate an FE ACTIVE. The projected life-cycle cost (adjusted for an inflation rate of 4% and a rate of interest of 5%) of the existing pump-and-treat system was calculated to be 3,930,000 (1996 dollars). The life-cycle cost (adjusted for a 4% inflation rate and a 5% interest rate) of the FE ACTIVE retrofit system was calculated at 945,000 (1996 dollars). Both estimates included capital costs, operation and maintenance expenses, and the cost of groundwater monitoring. Similarly, had the FE ACTIVE system been installed initially, its life-cycle cost would be 1,630,000 (1996 doUars). 

The analysis of capital costs, operating costs, and footprints, fuel economy and emissions has been conducted using Excel spreadsheet modeling. Data sources included vendor data sheets and website information, vendor quotes and communications, case study experience, published literature (including Environmental Protection Agency data), theses, and engineering estimates. Major assumptions for the analysis include ... 

Figures 1 and 2 summarize the economic results of this study for the most conservative assumptions which were examined i.e., two cycles of extraction. For this case the processing cost is 96.1c per gram of fed to the reactor the total capital cost of the plant has been estimated to be 2,853,000. A physical plant has been designed to the point where we can make valid cost estimates for it. An artist s drawing of this plant is shown in Figure 3. It is clear from even the most cursory examination that this plant is simple in concept and small in size.

From the above items, it can be estimated that a total capital cost investment of S15M+ (in today s dollars) could have been saved by going single lift from the surface instead of installing a winze to reach the bottom of the presently known ore reserves in the targeted Case Study 2 operation. 

For study purposes, it is of course necessary to estimate plant maintenance and periodic component replacement costs for the overall plant economic evaluation. This is usually made on a basis of experience of similar plant and environments, for example 4 per cent of total plant capital cost per year. Estimates made on the basis of detailed build-up are inclined to be too optimistic and not worth the trouble of the exercise. This may not be the case for single pieces of large equipment, or plant which is centred on relatively few major equipment packages, as for power generation. 

A mixture of qualitative and quantitative methods was used in this work. These include reliability analysis, eapital investment costs, safety, feasibility and environmental impaet assessment (ElA). Tools used include failure mode and effect analysis (FMEA), environmental impaet assessment, and risk analysis. FMEA was used to conduct a reliability analysis, EIA was used to calculate the concentration of the flared gas eomposition partieles affeeting the local environment, and risk assessment was employed to find out the hazards and exposure in the case study in order to assure safety. Cost estimation was used to ealculate the capital investment cost for each option considered. Information and expert opinions were eaptured through interviews and questionnaires. 

Figure 7 shows the variation of estimated capital cost with production capacity. Capital costs, in this case, are estimated for a self-sufficient, fully integrated, grass-roots plant and are factored estimates based on equipment prices. (Capital and operating costs are provided for conceptual study only. These costs vary considerably depending on location and feedstock type and are therefore only for conceptual purposes.)... 

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